The British billionaire Mike Ashley’s shop, Frasers Group, made a €2 billion ($2.31 billion) acquisition offer for the faltering German fashion brand Hugo Boss on Wednesday.
For the remaining shares, Frasers, the largest shareholder in Hugo Boss with a 26.06% holding, is offering €38 per share in cash, which is 4.3% more than the €36.44 closing price of Hugo Boss stock on Wednesday.
Hugo Boss would be the most recent addition to Ashley’s vast retail empire, which also includes Frasers’ shares in Asos, Debenhams, and Currys, as well as Sports Direct and House of Fraser under the Frasers Group.
Due to declining sales, Hugo Boss implemented a new plan six months ago that included redesigning storefronts, streamlining its product line, and adding more women’s wear.
The value of its shares is currently around half of what it was three years ago.
To facilitate further investment by Frasers in Hugo Boss, Frasers has decided to make a voluntary public takeover offer to all Hugo Boss shareholders for all Hugo Boss shares not directly held by Frasers,” Frasers said in a statement.
Hugo Boss stated late on Wednesday that Frasers did not work with the company to coordinate the takeover strategy and that its board will consider the offer, which values the remaining shares at roughly €1.98 billion, or 73.94% of the company.
Frasers stated that it still supports Stephan Sturm, the chairman of Hugo Boss, and Daniel Grieder, the CEO.
This is a change from its statement in November that it no longer had faith in Sturm.
It stated that Michael Murray, the CEO of Frasers and a member of Hugo Boss’ supervisory board, was not involved in the board’s deliberations or the decision to make the offer.
In 2022, Ashley, who owns 73.7% of Frasers Group, resigned from the board and gave his son-in-law, Murray, the position of CEO.
Frasers received financial advice on the bid from Deutsche Bank and BNP Paribas.
